US Regulators Delay Decision On Ether ETF Options

According to Cointelegraph, U.S. regulators have announced a delay in their decision regarding the approval of options trading linked to Ether (ETH) exchange-traded funds (ETFs). This decision was revealed in a regulatory filing dated February 7. The filing was a response to a request made by Nasdaq ISE in July, seeking permission to list options contracts for BlackRock’s iShares Ethereum Trust (ETHA). The U.S. Securities and Exchange Commission (SEC) now has until April 2025 to make a final decision on this matter. Nasdaq's proposed rule change is specifically aimed at options on ETHA, which is currently the only Ether ETF listed on Nasdaq’s electronic exchange. Other Ether ETFs are listed on the New York Stock Exchange’s Arca or Cboe. The creation of an options market for ETH ETFs is seen as a significant step towards broader adoption. Spot Ether ETFs, which were listed in July 2024, have already attracted around $9 billion in net assets, as reported by The Block. Options are financial contracts that provide the right to buy or sell an underlying asset at a predetermined price. The SEC is currently reviewing proposals for options on Ether ETFs. This follows the introduction of options on spot Bitcoin (BTC) ETFs, which began trading in November. On the first day of listing, options contracts on BlackRock’s iShares Bitcoin Trust ETF (IBIT) experienced nearly $2 billion in total exposure. Investment managers anticipate that the expansion of cryptocurrency ETF options in the U.S. will accelerate institutional adoption and potentially offer significant benefits for coin holders. In September, the SEC approved Nasdaq’s electronic securities exchange to list options on IBIT, marking the first time the agency sanctioned options on spot BTC ETFs for U.S. trading. Subsequently, in November, the Commodity Futures Trading Commission and the Options Clearing Corporation also approved BTC ETF options, removing the final barriers for exchanges to list these financial derivatives products. U.S. President Donald Trump, who has pledged to transform the U.S. into the "world’s crypto capital," is appointing crypto-friendly leaders to head financial regulatory bodies. This has generated optimism within the industry for swift approvals of proposed crypto financial products.